Tips for investing in stocks

  How to buy stocks ??

There is a very easy process to buy stocks we just have to open a de-mat amount. Early on shares /Stocks in physical form but now they are digitalised.

While investing in stocks it is important to survive your first objective is to survive

We can say that investing and trading are like a business main thing that in business you go to work every day but you will earn a great equity in valuation on your start up over 7-8 years so imagine if you are trading every day you will probably make over many years

   Things we should take while investing

First of all don't send your whole money and saving on stocks/trading for example - if you earn 1 lakh rupees per month and your expenses are 50000 ruppes multiply it by 6 that is equal to 3 lakh rupees this is your freaking, emergency fund and liquid funds . Now if you have left with some money then you can 70% of it in long term Investments and with 30% you can trade because it is little bit risky so now your trading fund is separate emergency fund is separate investing fund is separate.

Analysis before investing 

We should do many kind of analysis before investing like technical analysis, fundamental analysis, system analysis, discontinary analysis

          Technical analysis includes

1- analysis of company's stock price

2- use of short term trading

3- find respective pattern to create money opportunities

            Fundamental analysis includes

1- analysing company financially

2- use for long term Investments

3- finding under valued stocks to invest for long term purpose 

              System analysis includes

1- Quantified rules bases entry and exit

2- no emotions

3- no need of monitor the market all time 

         Discontinary analysis includes

1- gut based feelings

2- involves Human emotions

3- need to monitor market all time

       Why do stock prices fluctuate

To understand this we can take a example of a flight on a normal day price of the ticket is low because demand is low but on a festival day demand increase and number of seats are fixed or limited in this case price increases  same thing happens with stocks if demand increase then price will also increase

Other reason behind the change/fluctuate in price is that ~

Herd mentality - it is not a new thing it just DNA -ed into humans currently herd mentality is effecting the price of dogecoin when ever Elon musk tweets regarding dogecoin its price increase because people think that he is a billionaire and if he is investing it must be profitable herd mentality works sometimes but we should avoid it 

     Should we buy or invest in global stocks

Answer is yes special in US stock 

We Should invest in US stocks because investing in dollar means return in dollar and it has high return, less volitaly and it helps in to earn a good amount of profit

In the end I just wanna say that trading and investing is a good options for earing money but you must have to be careful while investing.

                                   By - Manas Mehta